Loans by Type

3 Months Ended

Mar. 31, 2018

Receivables [Abstract]

Loans by Type

Note 6 – Loans by Type

A summary of loan categories is as follows:

	March 31,		December 31,
(In thousands)	2018		2017
Commercial and industrial	$	256,381	$	236,394
Real estate
Commercial:
Mortgage		90,742		94,675
Construction		15,708		9,359
Church, church-related:
Mortgage		307,654		316,073
Construction		28,932		25,948
Industrial Revenue Bonds		2,557		3,374
Other		26		408
Total loans	$	702,000	$	686,231

The following table presents the aging of loans by loan categories at March 31, 2018 and December 31, 2017:

	Performing						Nonperforming
							90 Days
			30-59		60-89		and		Non-		Total
(In thousands)	Current		Days		Days		Over		accrual		Loans
March 31, 2018
Commercial and industrial	$	256,381	$	—	$	—	$	—	$	—	$	256,381
Real estate
Commercial:
Mortgage		90,742		—		—		—		—		90,742
Construction		15,708		—		—		—		—		15,708
Church, church-related:
Mortgage		307,654		—		—		—		—		307,654
Construction		28,932		—		—		—		—		28,932
Industrial Revenue Bonds		2,557		—		—		—		—		2,557
Other		26		—		—		—		—		26
Total	$	702,000	$	—	$	—	$	—	$	—	$	702,000
December 31, 2017
Commercial and industrial	$	236,394	$	—	$	—	$	—	$	—	$	236,394
Real estate
Commercial:
Mortgage		94,675		—		—		—		—		94,675
Construction		9,359		—		—		—		—		9,359
Church, church-related:
Mortgage		316,073		—		—		—		—		316,073
Construction		25,948		—		—		—		—		25,948
Industrial Revenue Bonds		3,374		—		—		—		—		3,374
Other		408		—		—		—		—		408
Total	$	686,231	$	—	$	—	$	—	$	—	$	686,231

The following table presents the credit exposure of the loan portfolio by internally assigned credit grade as of March 31, 2018 and December 31, 2017:

	Loans		Performing		Nonperforming
	Subject to		Loans Subject to		Loans Subject
	Normal		Special		to Special
(In thousands)	Monitoring1		Monitoring2		Monitoring2		Total Loans
March 31, 2018
Commercial and industrial	$	254,932	$	1,449	$	—	$	256,381
Real estate
Commercial:
Mortgage		89,882		860		—		90,742
Construction		15,708		—		—		15,708
Church, church-related:
Mortgage		307,559		95		—		307,654
Construction		28,932		—		—		28,932
Industrial Revenue Bonds		2,557		—		—		2,557
Other		26		—		—		25
Total	$	699,596	$	2,404	$	—	$	702,000
December 31, 2017
Commercial and industrial	$	234,271	$	2,123	$	—	$	236,394
Real estate
Commercial:
Mortgage		93,788		887		—		94,675
Construction		9,359		—		—		9,359
Church, church-related:
Mortgage		316,042		31		—		316,073
Construction		25,948		—		—		25,948
Industrial Revenue Bonds		3,374		—		—		3,374
Other		408		—		—		408
Total	$	683,190	$	3,041	$	—	$	686,231

1	Loans subject to normal monitoring involve borrowers of acceptable-to-strong credit quality and risk, who have the apparent ability to satisfy their loan obligations.
2	Loans subject to special monitoring possess some credit deficiency or potential weakness which requires a high level of management attention.

Impaired loans consist primarily of nonaccrual loans, loans greater than 90 days past due and still accruing interest and troubled debt restructurings, both performing and nonperforming. Troubled debt restructuring involves the granting of a concession to a borrower experiencing financial difficulty resulting in the modification of terms of the loan, such as changes in payment schedule or interest rate. Management measures impairment in accordance with FASB ASC 310, “Allowance for Credit Losses.” The fair value of the collateral is based upon an observable market price or current appraised value and therefore, the Company classifies these assets as nonrecurring Level 3. There were no non-accrual loans, loans delinquent 90 days or more and still accruing interest, or loans classified as troubled debt restructuring at March 31, 2018 or December 31, 2017.

There were no foreclosed loans recorded as other real estate owned (included in other assets) as of March 31, 2018 and December 31, 2017.

A summary of the activity in the allowance for loan losses from December 31, 2017 to March 31, 2018 is as follows:

	December 31,		Charge-							March 31,
(In thousands)	2017		Offs		Recoveries		Provision			2018
Commercial and industrial	$	3,652	$	—	$	5	$	320		$	3,977
Real estate
Commercial:
Mortgage		1,394		—		—		(53	)		1,341
Construction		70		—		—		48			118
Church, church-related:
Mortgage		3,962		—		—		(106	)		3,856
Construction		196		—		—		22			218
Industrial Revenue Bond		52		—		—		(12	)		40
Other		879		—		—		(219	)		660
Total	$	10,205	$	—	$	5	$	—		$	10,210